Whaddaya hear, whaddaya say? Welcome to episode 18 of the Career Consigliere podcast, your no frills, no BS forum for navigating the corporate job scene. Jimmy with you, as always, for what we hope to be a highly informative and engaging half an hour, or so! Today, we continue the topic of accepting a job offer by taking things one step further: we now address non-salary considerations. These are very important benefits that you receive, but have nothing to do with your paycheck. They come in many shapes and sizes, and all need to be considered differently depending on you and your situation. We’ll get into what they are, and how you can factor them into the VERY complex equation of determining whether this particular job offer is right for you. Get ready for an eye-opening episode podcast land: letttttsssss get it!
Let’s start by saying this: there is no possible way to cover every single kind of benefit you might receive from a corporate job. The list is a mile long, and it varies quite a bit based on the company, your role, your level in the organization – there are too many permutations to cover in a single episode. With my experience, and the experience of those I know, we’re going to keep the focus of this episode to that of your “typical”, run-of-the-mill corporatopian. This “avatar”, if you will, works in an entry to mid-level role and likely earns less than $200K in annual salary. We’re not talking about executives, since they often get special benefit packages with a completely different set of parameters. Put it this way, if you could take every employee in corporate America, put them in a giant lottery ball machine, mix them all up, and pick a random one, THAT’S who this episode is geared towards. The regular old average person working in a decent-sized corporation. Hell of a visual, right?
We talked all about salary in the last episode. And just for the record, we’re not deviating from the message here: yes, salary is still THE single most important “benefit” your receive from your work. Nothing else beats salary: however, other benefits also need to be considered. If you have multiple offers that are all in the same salary ballpark, then other factors (like these benefits) are what will help you steer the ship to figure out what’s right for you. So here are the most common ones that I’ve come across in my experience, my clients’ experience, and what you hear about most often out on the street: Health benefits, PTO time, Flexibility, professional development, travel perks, car packages, and long-term incentives. We’ll explain what each of them are, and how you should work them into your formula for accepting a job offer.
To start off, health benefits. If you’re listening from Canada, then this might not be as meaningful. But to anyone from the US, health benefits are kind of important. You’re usually way better off with private insurance than you are with state-funded programs, and the easiest and most affordable way to get health coverage is usually through your employer. Most decent-sized corporations partner with some of the big insurance companies and usually offer a handful of different plans to employees, with the cost being deducted directly from their regular paychecks. When you get your offer, TA will usually email you some kind of a benefits brochure that breaks everything down for you: the plans available, what they cover, when they go into effect, and most importantly, what it’s going to cost you. You’ll want to read this document carefully, and ask any questions you have. Even if TA can’t answer them directly, they’ll pass you onto someone who can. Most of the costs associated with your health plan will come out of your paycheck, so you’ll DEFINITELY want to have a good handle on how this will affect your take-home pay, while also making sure you pick the right plan for you, as well as anyone else that may be covered by it. This applies to anyone that’s married, has kids, or has anyone else who depends on them in a financial sense. The job offer could be rock solid, but if the health coverage sucks, and you or someone in your family has a health condition, the costs can get real out of hand REAL quick, so you’ll definitely want to look at the whole picture to make sure it makes sense from all angles.
Next up, paid time off (or PTO for short). The far majority of companies give you a defined number of PTO days, 20 is very common. It could vary, but anywhere from 10-20 is a pretty safe assumption for what you can expect. These are the days that you can use any old way you’d like, and for whatever purpose. You’ll probably also get other allocations of time specifically for sick days or other personal matters. Understanding every kind of day off gets VERY complicated, so you’ll definitely want to clarify this when you’re discussing your offer. If you’re a single person, just having your standard PTO allowance might be more than enough. But if you’re married, have a family, or have any other unique situations that will require heavy personal time, you’ll want to make sure that your offer from this company supports that. Another thing that’s becoming increasingly common is what they call “Unlimited PTO”, where companies don’t even keep track of your days off: instead, it’s all done on an honor system. It’s more common in newer, start-up type companies, but I have seen some decent sized corporations switch over to this model. I’m not a huge fan of it personally: I prefer the traditional system where you’re working with a specified number of days/hours to budget – I think it just makes the whole process a lot more straightforward. The unlimited model adds a lot of subjectivity into the mix which could get dicey if you land in a place with a bad work-life balance. I’m not saying it should be an automatic dealbreaker for you, it’s just more of a “buyer beware” if you get an offer from a place that has this kind of system in place.
Next up is flexibility. When I say flexibility, I’m referring to the ability to work remotely, or at least do a hybrid type of schedule. HUGE topic today. The corporate world was already heading 100 miles an hour in this direction, and then the pandemic REALLY accelerated things. Personally, thanks to the pandemic situation, I think virtual/hybrid work did a quantum leap, probably 10 years ahead of its time. The average corporate job offer you get these days comes with some kind of a hybrid arrangement: typically it's 3/2 – three days in the office, 2 days from home. But don’t make any assumptions on this: there are many companies stuck in very costly commercial leases and are still demanding employees come in every day. You can determine whether that’s for you or not, but things to consider here: what kind of other commitments do you have after work? Are there other things you need to do during the day that working remotely would enable you to do? Would your commute be treacherous and expensive? Would having remote capabilities preserve your quality of life? Or are you the kind of person who always wants to be in the office? Preferences here will differ tremendously from person to person, but these are some very valid things to keep in mind when trying to figure out if the job is right for you.
Next, professional development. Usually this takes the form of tuition reimbursement. Many corporations have programs in place where they’ll reimburse some, or possibly even ALL, of your tuition costs for a degree program. Say you have an Associates and want to earn a Bachelors, this could be a GREAT opportunity to do it, and save some serious coin in the process! Or, maybe you already have a 4-year degree, but you have visions of earning your MBA: the company might just be willing to help you out! And maybe it’s not a degree program: maybe you’re working as a project manager and want to get a professional certification in the field – the company might be willing to sponsor that! But pay CLOSE attention here: tuition reimbursement of any kind usually comes with SERIOUS stipulations. For one, you usually need to be working at the company for a certain amount of time first. Next, there usually needs to be a business need for you to have that certification: the company needs to know that this is an investment they’re making in YOU, so that you can add more value for THEM. And along those lines, if they DO pay for education, expect some pretty tight strings to be attached. It’s not uncommon for a company to require you to stick around for several years after completing your program, or else you wind up owing them the money. The cost of higher education today is OUTRAGEOUS: student loans are off the charts, and the whole financial aspect is in some pretty bad shape as a result. The company you work for could REALLY help you out by throwing you a few bucks for school, but think about the whole picture before you go down that road: Do you like the company enough to stay at least a few more years? Would the program help you, even if things didn’t work out with this organization, or are you spending a whole bunch of time and energy in an academic pursuit that only helps THEM? It may sound great at first, but a professional development arrangement like this could turn into a set of golden handcuffs if you’re not careful, so really give this some long-term thought before letting professional development or tuition reimbursement influence your decision on accepting a job offer too heavily.
Up next, travel perks. The bigger the company you work for, the larger their operations will be, and the more ground they’ll cover with their services. As a result, there’s a very good chance you’ll be asked to travel, especially as you take on more responsibility and rise through the ranks. For a lot of people, this is a FANTASTIC perk. I know for me personally, I’ve been able to see a lot of the country, as well as other parts of the world, thanks to business travel. I definitely wouldn’t have gone into my own pocket for those kinds of trips, and those trips opened me up to a lot of different places, people, cultures, you name it, that I wouldn’t have otherwise seen. I was also able to build relationships with colleagues from other locations that, without them, I wouldn’t have had the kind of success I had. It can be a TREMENDOUS experience for you, both professionally and personally. But, it’s not for everybody. I worked with a lot of people that were very averse to travel for a lot of different reasons: some were afraid to fly, some had family obligations they weren’t comfortable stepping away from, and some just plain didn’t want to. What’s important to you? As you’re in the process of accepting your offer, you’ll definitely want to gain a very firm understanding of how much time you’ll be spending on the road to make sure it fits with all aspects of your life – whatever that means for you.
Let’s move now to car packages. The classic example of corporatopians with cars are those who work in field sales. As you travel from one customer to another, corporations reimburse you for your mileage and fuel, and in many cases they’ll even buy you a car. But it’s not JUST salespeople who get these benefits: I’ve worked places where once you make it into a certain level of management, you automatically get a car, regardless of whether you actually use it for work-related travel or not. It can be a pretty awesome perk! Cars are a MEGA expense for the average consumer, and they depreciate in value over time, so if your company is willing to shoulder that burden for you, I wouldn’t recommend saying no! Not a whole lot of downside to this, really: but it WILL come with responsibility on your part. In a lot of cases you’ll be responsible for routine maintenance at very specific times, you might be restricted on the mechanics and body shops you can use, and at the end of the day it’s not “your” car, so you have to be careful how you treat it or else you can wind up on the hook for damages. Just make sure you understand all the policies thoroughly before you get all ga ga over the car and it sways you into accepting the job. Also, remember: the job can end at any time. And guess what, if it does, you’re probably going to have to give the car back. It’s easy to get really comfortable and build the rest of your life based on driving someone else’s car, so just make sure that your budget can absorb the hit and that you have a contingency in place for another vehicle if things ever didn’t work out at this company.
And finally, we save the best for last: long-term financial incentives. In the corporate world, the most readily available long-term incentive for the average employee is employer-sponsored retirement plans, the classic example being the 401-K. Years ago, companies paid out pensions, but this is so uncommon anymore that it’s not even worth going into here. Guys, I’m going to be straight-up with you. I’m a personal finance nut: VERY big on saving and investing, and through that I’m pretty up-to-speed on the retirement picture here in the US. And it's pretty dismal – I won’t bore you (or scare you) with any statistics here, but let’s just say that the average corporatopian is headed for some pretty dire financial straits come retirement. There’s nothing sexy about a 401-K: it’s an INCREDIBLY dry subject, there’s a lot of verbiage the average person doesn’t understand, and it takes YEARS of investing before you notice any substantial progress. In fact, when they’re considering a job offer, most people usually glaze over the retirement package portion. It’s not their fault, either: a lot of this stuff isn’t taught in schools, and there’s a lot of negative sentiment about the investment markets that turns the average person off.
But please! Do us both a favor and listen up here: With 401-Ks, companies will many times match your contributions up to a certain percentage, typically somewhere around 5%. So let’s just use easy math: you make 100K a year, and you choose to contribute 5% of your salary to your 401. That’s 5K a year that you’re investing towards your retirement. Well guess what, a company that offers a 5% match will put an additional 5K into your account: it’s literally free money! I know it’s not very appealing since you never see this money and you can’t legally do much with it until you’re 59 ½ years old (not without paying heavy taxes and serious penalties, anyway), so I can understand why most people don’t pay it much mind. But I PROMISE you: if you take retirement savings seriously, you’ll thank yourself one day.
And here’s why: Guys, I don’t mean to sound brutal, but one of three things is going to happen to you someday: you won’t WANT to work anymore, you CAN’T work anymore, or nobody wants YOU anymore. In any case, once you hit this point, your earning potential is seriously diminished. And trying to rely on the government for social security? Good luck with that. The best way to set yourself up for security later in life, without having to rely on anyone else, is to save as much as you possibly can, and to start as EARLY as you possibly can. To do so, make sure the company you’re signing on with offers you a good retirement savings plan. Most companies these days match your 401-K contributions, but not all. Guys, I’d be concerned about a company that doesn’t contribute on your behalf. It just leaves a bad taste in my mouth. I’m not saying that it has to be a dealbreaker, but if they’re not willing to invest in their employees’ futures, when most of their competitors ARE doing so, I’d be willing to bet there’s probably a malfunction somewhere in the company’s value system, and you’re only seeing the tip of the iceberg. You do what you’ve gotta do, but saving for the future should definitely be a big part of your decision to accept a job offer.
People, we covered a lot of ground today. So let’s summarize all of our new-found wisdom about non-salary considerations of a job offer with today’s......consigliere call to action. Health benefits: make sure you understand the costs, and what is covered, in advance of accepting your offer. This is ESPECIALLY important when it’s not just you – if you have family or other dependents on your plan, you’ll need to consider it from all angles to make sure that what the company offers is right for you.
Next, paid time off. Anywhere from 10-20 days is pretty standard, but be realistic. Is what they’re offering enough? Does it fit with your personal situation, and anything else you do outside of work that might require your availability during normal business hours? Also, be wary of companies that offer “Unlimited” PTO – it might sound great, but it could be a crafty way of the company compensating for a culture with a really unhealthy work-life balance.
Flexibility. Are you okay with working in the office 5 days a week? Do you want to work completely remote, or are you okay with split hybrid type situation? Really take a good look at all aspects of your life to figure out what’s going to work best for you. Think of non-work commitments: activities that you and your family are involved in. Think of commuting times, and commuting costs. Also think about the kind of work you’re doing: would in-person connections be valuable, and will you miss out on anything being remote? Use your best judgement and make sure the job arrangement fits with what’s going to work for you.
Professional development. It’s great that the company is willing to make an investment in you. But before you go down that road, really understand what’s involved. Is the degree or credential necessary? Will the company pay for it at all? Will it continue benefitting YOU, even if you leave this company someday? Do you plan to stay with the company for a while, or do you risk owing them significant amounts of money if you leave soon after your development initiative is over? Don’t get trapped there wearing golden handcuffs – you’ll be miserable and forced to smile.
Travel. It can be a fantastic experience personally, and REALLLY benefit you professionally. But get a good understanding of whether this will be required in the job: ask lots of questions. Also, the answer can change over time. Understand the kind of company you’re going to be working for, what your role is, and get a sense of how their operations are set up. Even if there’s no travel in the beginning, could this change down the road? You want to try to anticipate these kinds of commitments ahead of time so that you have plans in place if/when they happen.
Car packages. They are a TREMENDOUS perk, and you almost can’t go wrong saying yes. Just make sure you understand what’s involved, and what your responsibilities are: it can sometimes be more work than you realize when it comes to maintenance, inspections, registrations, insurance, you get it. Also, make sure you still have something else to drive, or could quickly GET something else to drive, should things end abruptly with this company.
And finally, retirement packages. The average American, corporatopian or not, doesn’t have a whole lot saved for retirement, and most have no idea how big of a problem this really is. NOBODY is going to take care of you later in life: not the company, not the government, and a lot of peoples’ families surprise them as well. Not to cast gloom and doom, but relying on YOURSELF is the best way to secure yourself a comfortable retirement, and signing on with the right company can be a big step in that direction! Pay close attention to the kinds of retirement plan options they offer, and take FULL advantage of any incentives or employer contributions – it’s free money! Why would you turn that down?
I’ll be the first to tell you, this is all very overwhelming. And combined with everything we learned about the salary situation, evaluating the whole picture of a job offer can be a pretty daunting task. But remember: you are under NO obligation to accept anything unless you feel good about it. If you have questions, that’s what TA is there for. Even if they themselves don’t have the answers, they can refer you to someone who works in HR or Benefits, however they have it set up, and somebody will be able to answer your questions. Take all of these benefits into consideration, throw in the salary variable, and accept the job offer that suits you best from all possible angles. Nothing will ever be perfect, but make the choice that checks the most boxes, and you’ll be set up for success.
Sadly folks, that’s all the time we have for today. But have no fears, and shed no tears, because I’ll be back with a new episode every week. As they say in the industry: no listeners, no show, so do me a favor, and stay loyal! If you find value in my content, please leave me a nice review, tell all your friends, and don’t forget to like, subscribe, and follow on whatever platform you use to get your podcasts. Beyond the confines of your headphones, speakers, TV screen, or any other crazy contraption with the ability to stream audio, I also provide one-on-one career assistance, so visit my website at career-consigliere.net to learn more about me, book me for one-on-one coaching, join my email list, or explore some of the other career services I offer. And to all of you out there in podcast land, remember this: Who’s the boss in your career? You, nobody else.
